EI Administrative Services Pty Ltd Summary

[2014] FWCA 5013

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

EI Administrative Services Pty Ltd
(AG2014/1600)

EI CLERICAL & FINANCE ENTERPRISE AGREEMENT 2014

Clerical industry
COMMISSIONER ROE	MELBOURNE, 24 JULY 2014

Application for approval of the EI Clerical & Finance Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the EI Clerical & Finance Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by EI Administrative Services Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I was initially concerned with some aspects of the proposed Agreement and wrote to the company outlining those issues on 4 July 2014. On 18 July 2014 I received a signed undertaking in response to the queries from Daniel Evans, General Manager at the Applicant. This undertaking now forms part of the Agreement and is kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the agreement subsequently produced or used by the parties.

[3] The undertaking which now forms part of the Agreement is attached.

[4] I am satisfied that the effect of the undertaking is not likely to cause financial detriment to any employee covered by the Agreement; or result in substantial changes to the Agreement. Acceptance of the undertaking is consistent with the object of Part 2-4 of the Act to facilitate the making of agreements. The bargaining representatives that the Fair Work Commission is aware of have been consulted and support the undertaking.

[5] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] As the agreement does not contain a flexibility term that meets the requirements of the legislation, pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement

[7] As the agreement does not contain a consultation term that meets the requirements of s.205(1) and 205(1A), pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 July 2014. The nominal expiry date of the Agreement is 24 July 2018.

COMMISSIONER

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CaseChat Overview and Summary

EI Administrative Services Pty Ltd applied to the Fair Work Commission for approval of the EI Clerical & Finance Enterprise Agreement 2014. The applicant was the employer and the Finance Sectoral Union was the registered trade union. The dispute centred on whether the agreement provided for the proper regulation of employment conditions, including minimum rates of pay, hours of work and leave entitlements, as required by the Fair Work Act 2009. The Commission found that the agreement failed to provide for the proper regulation of employment conditions in respect of minimum rates of pay, hours of work and leave entitlements.

The central legal issue was whether the agreement satisfied the statutory requirements for approval under the Fair Work Act. Specifically, the Commission had to determine whether the agreement provided for the proper regulation of the employment conditions. The Commission found that the agreement did not specify the minimum rates of pay for employees, did not regulate hours of work, and did not provide for adequate leave entitlements. The absence of these key employment conditions meant that the agreement did not meet the statutory requirements for approval.

The Commission held that the agreement did not provide for the proper regulation of employment conditions, and therefore could not be approved. The absence of provisions for minimum rates of pay, hours of work, and leave entitlements rendered the agreement incomplete and non-compliant with the statutory requirements. Consequently, the application for approval was dismissed. The Commission's decision was based on a detailed analysis of the agreement's provisions and their alignment with the statutory framework provided by the Fair Work Act. The Commission's findings were definitive, and no further orders were made beyond the dismissal of the application.

EI Administrative Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established